Stocks traded mixed to start the week, with investors assessing weak economic growth data out of China while they braced for earnings season to kick into high gear.
China's economy grew 6.3% in the second quarter compared to a year ago, missing estimates of 7.3%. Quarter-over-quarter, growth was just 0.8%, compared t0 2.2% in the first three months of the year. The figures paint a bleak picture for the second largest economy in the world, which is dealing with slowing demand, a wobbling property sector, and a challenging currency environment for the yuan.
The slowing Chinese economy also poses questions about global growth and demand for energy commodities like crude oil, which has failed to rebound significantly this year as China's post-COVID recovery falters. Meanwhile, investors are gearing up to sift through earnings this week. Big banks kicked off earnings season at the end of last week, painting a mostly upbeat picture of the macro landscape. Up this week are Tesla and Netflix, which are both due to report on Wednesday and will usher in the start of Big Tech earnings.
Investors are expecting second-quarter figures to be less rosy than the first quarter, but the results are seen representing a trough in corporate earnings this year.